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2014 (2) TMI 427 - AT - Income TaxDisallowance of commission payment – payment of commission to the son of the partner of the firm - genuineness of commission paid - Held that:- From the details of commission paid, it is seen that during the year under consideration, commission was only paid to Mr Keval Patel and no other party was paid commission but in AY 2006-07, 2008-09 and 2009-10, apart from commission to Mr Keval Patel, Assessee had also paid commission to other parties - The details of commission further reveals that commission @ 2% has been paid to Mr. Keval Patel in all the years but on the other hand, the commission to other parties has been paid at 1%, 1.5% and 2% - he would be entitled to commission at 2% of sales and will be paid at the year end on the basis of yearly statement and further in case of credit sales, only after the realization of the sales, commission would be paid - nothing has been placed on record about the sales made to various parties, whether the sales were on credit and in case the same were on credit, whether the commission was paid only after realisation of sales –thus, the disallowance is restricted to Rs. 2 lacs as against Rs 4,83,256/- made by the AO – Decided partly in favour of Assessee.
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